What you need to know: • YAY reported Q3/26 sales of $3.1M (+12% YoY) and gross margin of 11%, missing our estimates of $3.3M and 20%, respectively. • YAY signed an exclusivity agreement with Commercial Bakeries Corp. to act as the sole supplier of maple cream cookies in the Canadian travel and tourism channel. • We initiated coverage on YAY in March and published a management interview with CEO Tom Zaffis and Chairman David Beutel. Click here to read the initiation and here to watch the full interview. This morning, THS Maple Holdings Ltd. (YAY:TSXV) reported its Q3/26 financial results that came in below our estimates on both the top line and on profitability. The quarter was shaped by a heavier weighted wholesale mix, softer demand in airport and travel-related channels, and higher input costs pressures across packaging and transportation. We remind readers that we initiated coverage on THS in March; read the report here. We are maintaining a BUY rating and $0.20/share price target on YAY. Q3 Financial Highlights • Q3 sales of $3.1M (+12% YoY) compared to our estimate of $3.3M. The result was achieved despite supply shortfalls in its maple cream cookie category, with the cumulative nine-month revenue impact estimated at ~$1M. 9-month revenue was $11.7M, up 14% YoY. • Sales by region, for the quarter, Canada was $1.7M (-16% YoY), the U.S. was $0.6M (+22%), and International was $0.8M (+182%). • Gross margin for the quarter was 11%, missing our 20% estimate and declining YoY, driven by higher bulk maple syrup sales to wholesale customers and higher packaging, transportation, and fuel costs. The quarter was also impacted by softer demand in certain travel and tourism channels.